Did you know if you’re renting your home out, it might not be covered by homeowner's insurance?
Rental Property Rule Of Thumb
When you live in your home, you tend to take care of it because it’s yours. When someone else lives in your home or a rental property of yours, they don’t care as much. So you’ll need different insurance than a standard home insurance policy, sometimes called “dwelling fire policy” or “landlord property policy”.
What You Need for Coverage
With home insurance you need to cover the house and the stuff inside but with a rental property you’ll only need to cover a small amount of the stuff inside like the stove or fridge.
As far as coverage for the actual dwelling (house) you’ll have the option to not cover perils such as Theft, Vandalism, or Water. You’ll save a little bit of money this way but if you’re dependent upon the income from the property or you’re not willing to eat $3,000 in damages to save a bit, then we definitely don’t recommend that. You should consider a policy that will give you similar dwelling coverage to that of a homeowner’s policy.
Which One Do I Need?
There’s no right or wrong answer - every situation is different. It’s our job to help determine what coverage would best fit your situation.
Thrive Insurance can help you identify the best landlord policy for your property. We want to know your goals for the property and how you would respond if the property encounters catastrophic damage. No property is the same, so we look to every insurance provider to find the right solution for your rental property.
If you are considering renting out your home or an investment rental property, schedule a consultation and let us help you find the right coverage to fit your needs.
SEE ALSO: Do You Need Renter's Insurance?